VEGOILS - Palm slips due to weak edible oils from rivals, increasing production, and sluggish demands

Malaysian palm futures ended a two-session winning streak on Thursday as prices were weighed down by weaker edible oils, and concerns about rising production, sluggish demand for exports, and weaker rivals.

At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for October delivery fell 48 ringgit or 1.12% to $4230 ringgit (US$992.96) per metric ton.

David Ng is a proprietary trader with Kuala Lumpur's Iceberg X Sdn. Bhd. He said that the price of crude palm oil futures fell during Asian hours due to the weakness in Chicago soybean oil and Dalian Palm olein markets.

He said that "the persistent concern about rising production and weak export added additional pressure to the market."

According to cargo surveyors, the July palm oil exports dropped between

Dalian's palm oil contract, which is the most active contract, fell 0.8% while soyoil prices dropped 0.63%. Chicago Board of Trade soyoil prices were down by 0.98%.

As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils.

Oil prices

Edged down

As investors weighed the risks of supply from U.S. president Donald Trump's push to end the Ukraine war quickly through tariffs, a surprising build-up in U.S. oil stocks weighed down on prices.

Brent crude, the benchmark oil price, was down 0.59% to $78.81 a barrel at 1023 GMT. Palm oil is less appealing as a biodiesel feedstock due to weaker crude oil futures.

The palm ringgit's trade currency, the dollar, fell by 0.59%, making the commodity more affordable for buyers who hold foreign currencies.

The Plantation and Commodities Ministry reported that Malaysian palm oil exported to the United States between January and May rose by 51.8% compared to a year ago to 93,000 tons. $1 = 4.2600 Ringgit (Reporting and editing by Ashley Tang, Harikrishnan Nair, and Vijay Kishore).

(source: Reuters)